**Nurphoto | Nurphoto | Getty Images** **BARCELONA** — On Sunday, Honor announced its commitment to invest $10 billion in artificial intelligence over the next five years and revealed a strengthened partnership with Google, as the Chinese smartphone manufacturer aims to increase its overseas market presence. This investment strategy, shared at the Mobile World Congress in Barcelona, aims to transform Honor from a traditional smartphone manufacturer into a comprehensive "AI device ecosystem company. " Honor is relatively new to the smartphone industry, having separated from Huawei in 2020 amid U. S. sanctions against the tech giant. Since then, the company has sought to extend its reach beyond China and enter the premium market, where brands like Apple and Samsung dominate. The firm has made progress by launching innovative products, including foldable smartphones; however, it still holds a modest global market share. IDC data indicates that its smartphone market share outside of China rose to 2. 3% in 2024 from 1. 7% in 2023. A spokesperson for Honor shared with CNBC that the funding will focus on integrating AI into its hardware and developing next-generation AI agents, which are often described as more sophisticated virtual assistants. Additionally, part of the investment will be dedicated to establishing a "platform for various AI devices. " "This is not only for our own products but also encompasses AI devices from partners, enabling different AI technologies to communicate with one another, thus offering consumers greater choices and seamless experiences, " the Honor representative stated. A small fraction of the funds will also be allocated to "preparing for the AGI (Artificial General Intelligence) era, " which refers to AI that possesses intelligence surpassing that of humans. **Strengthening Google Relations** On Sunday, Honor showcased a prototype of an "AI agent, " demonstrating its capabilities by having the agent assist in booking a restaurant based on specified preferences, including cuisine type and distance. Honor is collaborating with Google and chip manufacturer Qualcomm in the development of this AI agent, though no launch timeline was provided. In addition, the company is leveraging technology from Google Gemini, the American tech giant's AI system, for the AI functionalities on its newest devices. Furthermore, Honor declared its commitment to providing seven years of support—through the Android operating system and security updates—for its Magic series flagship smartphones, making it one of the few vendors to make such a pledge.

Only Google's Pixel devices and Samsung's flagship S series offer similar longevity in updates. Android, developed by Google, is the operating system in question. While this seven-year commitment is not directly tied to Google, it emphasizes Honor's dedication to the platform. Despite the multitude of Android smartphone manufacturers, few have the close ties to Google that companies like Samsung, the world's largest Android user, and Xiaomi, the second largest, possess. Honor is now joining that exclusive group. "Honor's enhanced collaboration with Google carries significant weight, " remarked Ben Wood, chief analyst at CCS Insight, to CNBC. "So far, it seemed Google was keeping Chinese smartphone companies at a distance with respect to the most advanced features of Gemini AI, but this partnership positions Honor on par with Samsung Galaxy and Google's own Pixel offerings, which is quite an achievement. "